Aviation: IndiGo flies into Rs 652.1 cr loss; blames fuel, rupee and rivals
Higher fuel prices are responsible for more than half of the profitability decline and remaining is due to currency depreciation and lower yields, said IndiGo's parent InterGlobe Aviation.
In a big setback for aviation sector, especially after the crisis at Jet Airways, budget carrier IndiGo's parent InterGlobe Aviation today reported a net loss of Rs 652.1 crore for the quarter ended September 2018. The airline said that weak rupee and high fuel cost have dragged the airlines in the quarter.
"Higher fuel prices are responsible for more than half of the profitability decline and remaining is due to currency depreciation and lower yields. IndiGo reports a net loss of Rs 652.1 crore and EBITDAR of Rs 220.4 crore for the quarter ended September 2018," it said in a statement.
The airline had recorded a net profit of Rs 551.6 crore for the same period last year. This is the first time that the carrier has posted a quarterly loss since getting listed in November 2015.
The Company’s co-founder and interim CEO, Rahul Bhatia said, “Aviation in India is facing significant pressures from high fuel costs, rupee depreciation and intense competition, all of which have impacted our profitability this quarter. Despite this difficult environment, IndiGo remains well-positioned thanks to our low-cost structure and strong balance sheet,”
IndiGo's total income rose over 18 per cent to Rs 6,514.2 crore in the quarter as compared to Rs 5,505.6 crore in the same period a year ago.
In the latest quarter under review, total expenses jumped 58.2 per cent to Rs 7,502.3 crore.
However, the airline saw a positive growth in the revenue from operations. The airline registered a revenue of Rs 6,185.3 crore from operations in the quarter, an increase of 16.9% compared to the same period last year.
The carrier also reported a strong balance sheet with a total cash of Rs 13,163.7 crore including free cash of Rs 4,417.5 crore.
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IndiGo has significantly strengthened its route network in recent times while adding 5 new destinations and 35 new routes.
"Along with our journey to build the leading nationwide air transport network, we added 20 aircraft this quarter, entered an additional 5 cities and started 35 new routes. We now fly over 100 daily departures from each of the six metros. I would like to thank all the IndiGo team, who work relentlessly to create a world-class airline for our customers," said Bhatia.